AkzoNobel has reported a step-up in profitability for 2025, lifting its adjusted EBITDA margin to 14.2%, up from 13.8% in 2024 and 10.7% in 2022, as the coatings giant positions itself for a proposed merger with Axalta.
Full-year revenue came in at €10.16 billion, down 5% year-on-year due to lower volumes and currency impacts, although operating income rose 27% to €1.16 billion. Net income increased to €635 million, up from €542 million the previous year.
Adjusted EBITDA was €1.44 billion, slightly below 2024’s €1.48 billion, but the margin improved on the back of cost discipline and €200 million in gross annual savings from its SG&A efficiency program — well ahead of the €120 million originally targeted.
In Performance Coatings, which includes automotive refinish and vehicle coatings, conditions remained challenging. Vehicle Refinishes stabilised at lower levels as the year progressed, while Industrial Coatings remained subdued, particularly in North America. Powder Coatings reinforced its global leadership position but was impacted by weaker architectural demand. In contrast, Aerospace Coatings and Marine and Protective Coatings delivered solid results, and all businesses in China performed strongly.
Revenue from Performance Coatings totalled €4.09 billion in 2025, compared with €4.30 billion in 2024.
AkzoNobel also completed the divestment of its India business at 25x EBITDA and reduced its leverage ratio to 2.0x net debt/adjusted EBITDA, ahead of its mid-term target.
The strategic highlight of the year was the proposed all-stock merger with Axalta. The combined group is targeting $600 million in cost synergies, EBITDA margins in the region of 20%, and greater global scale in automotive and industrial coatings.
Closing of the Axalta transaction is targeted for the end of 2026.